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SOURCE: USDOC, International Trade Administration
SOURCE KEY: IT
PROGRAM KEY: IT MARKET
PROGRAM: Market Research Reports
UPDATE: Monthly
ID NUMBER: IT MARKET 111109057
TITLE: JAPAN -JAPANESE RECREATIONAL BOAT MARKET-INDUSTRY ANALYSIS-ISA91
DATA TYPE: TEXT
END YEAR: 1992
UPDATED: 09/18/92
KEYWORDS 1:
| 9103
| BEST|PROSPECTS
| CC588
| COMPETITION
| DISTRIBUTION
| END|USERS
| ISA
| ISA9103
| JAPAN
| LUXURY|CRUISERS
| MARKET|ACCESS
| MARKET|ASSESSMENT
| PLEASUREBOATS
| POWERBOATS
| RECREATIONAL|BOATS
| SAILBOATS
| SPORTING AND RECREATION GOODS
| SPORTS|BOATS
| SPORTSFISHING|BOATS
| SPT
| STATISTICS
| TRADE|CONTACTS
| TRADE|PROMOTION
COUNTRY:
| JAPAN
| ASIA
| EAP
| EAST ASIA
| EAST ASIA & PACIFIC
| EAST ASIAN COUNTRIES
| EAST ASIAN GROUP
| FAR EAST
| FAR EASTERN COUNTRIES
| FAR EASTERN GROUP
| OECD
| ORGANIZATION FOR ECONOMIC COOPERATION & DEVELOPMENT
| ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMET
| PACIFIC
| PACIFIC RIM
| PACIFIC RIM COUNTRIES
| PACIFIC RIM GROUP
TEXT
JAPAN -JAPANESE RECREATIONAL BOAT MARKET-INDUSTRY ANALYSIS-ISA9103
SUMMARY
This article is derived from a report titled: "The Japanese Recreational
Boat Market in Japan", dated March 1991, prepared by Wallace Offutt
Consulting Co., Darien, Connecticut. This article consists of 51 pages and
contains the following subtopics:
OVERVIEW
MARKET ASSESSMENT
COMPETITIVE SITUATION
MARKET ACCESS
A. OVERVIEW
According to the Japanese Ministry of Transport, there is one recreational
boat for every 447 people in Japan. In the United States, the figure is one
boat for every 15 Americans, or nearly thirty times the boat ownership found
in Japan.
Japan is a developing country with respect to recreational boating, but this
situation is rapidly changing. Japanese today are working fewer hours and
taking more frequent and longer vacations. The outlook is that improvement
will continue in the future. The government is taking measures to encourage
fewer working hours and to promote more leisure activities, including marine
recreation. A resort development law is encouraging a national network of
resorts, many on the seacoast, and the government has a ten year program to
increase marina space from 50,000 boats to 400,000 boats.
Japan is at the beginning of a long cycle of growth in recreational
boating. While there is a shortage of marina space which will not be
relieved soon, the main ingredient is already in place: the Japanese
consumer is ready and willing to spend money on boats. Even if Japan's
pleasure boat ownership eventually only reaches a fraction of that of the
U.S., there will be a great many boats sold in Japan over the next ten or
twenty years. Based upon Japanese domestic shipment data and import/export
statistics, we estimate that the Japanese recreational boat market in 1990
was nearly $600 million. We estimate that growth will average around 8% per
annum over the next three years.
American manufacturers which have established a strong presence in the
Japanese market have already seen very good business. Between 1986 and
1990, imports of boats into Japan increased some 14 times to reach over $385
million. Imports from the U.S. accounted for roughly half of this amount
and in 1990 alone grew by 102%.
The recent boating boom has also benefitted Japan's manufacturers. Japan's
boating giant, Yamaha Motor Company, as well as other local producers, have
been upgrading their products and producing larger and larger boats to
respond to consumers' desire for American-style boats. Japanese
manufacturers are not prepared to cede their market to foreign manufacturers.
As is the case with most products in Japan, consumers want high quality and
good after-sales service in recreational boats. Most imported boats are
handled by local agents which provide the service demanded by Japanese
consumers. Foreign companies which are responsive to the marketplace and
are careful about quality have done very well.
American manufacturers have done especially well in the power boat segment,
which constitutes around 95% of the market. Japanese enjoy fishing and
American sportsfishing boats have been very popular. Most major American
powerboat brands are found in Japan. The Italian boat producers and
Taiwanese-produced powerboats have also done well. In sailboats, however,
European models are generally preferred for their sturdy construction, their
quality, and their interior designs. The French, led by Beneteau, have the
largest share of the sailboat market.
There are no overt barriers to market entry. However, Japan's boat operator
licensing system is time consuming and costly, making it too difficult for
newcomers to enter the market. And there is an inspection system for new
imported boats that is expensive, time consuming, outdated and unnecessary,
the effect of which is to make market entry unnecessarily difficult for
foreign manufacturers. Most Japanese in the industry would like to see both
of these systems changed.
B. MARKET ASSESSMENT
THE CURRENT MARKET
We estimate that the Japanese recreational boat market (including inflatable
boats, power boats, sailboats, rowboats and personal watercraft) in 1990
amounted to around Yen 89.1 billion ($594 million at 1990's average exchange
rate of 1$ = 150). This is a 49% increase from our estimate of Yen 59.7
billion for 1989. Tables A and B provide our estimates in U.S. dollars and
in yen of the market size and growth over the next three years. Tables 1
through 15 at the end of this report provide detailed breakdowns of most of
the figures in the table.
The statistics for measuring the size of the market are somewhat
questionable. One problem is that the figures for domestic production,
which are based on statistics compiled by the Japan Boating Industry
Association (JBIA), appear to be somewhat incomplete. The JBIA data is based
upon an annual survey of association members and other firms, and not all
manufacturers are included. While the Ministry of Finance (MOF) import and
export figures appear to be very complete, their categories and those of the
JBIA are in some cases different, making comparisons difficult. A second
problem is that JBIA-reported figures on personal watercraft imports and
exports are larger than the MOF figures for the corresponding period,
suggesting the possibility that these figures are not on the same base or
that there is some over-reporting or double counting of these figures on the
part of JBIA members. With these caveats, the estimates given in Tables A
and B seem to present a reasonable picture of the market.
RECREATIONAL BOATING IN JAPAN
Boat Ownership
According to estimates by the Japan Boating Development Center (JBDC), at
the end of 1989 there were approximately 275,000 recreational boats in use
in Japan. This compared with around 80,000 in 1970 and around 200,000 in
1980. Strong growth of recreational boating was seen in the early 1970s,
but the oil crisis came as a blow to the industry and there was little
growth after 1974. By boat type, the JBDC estimates that in 1989 there were
209,000 motorboats, 55,000 sailboats, and 11,000 inflatables. With a
population of 122.8 million (1988), this works out to approximately one boat
for every 447 Japanese.
TABLE A
Estimated Market for Japanese
Recreational Boats
(Millions of Dollars)
1988 1989 1990 Est. Growth '91-'93
Import Market 118 201 351 +7%
Local Production 261 306 302* +5%
Exports 110 75 58 -15%
Total Market 269 432 594 +8%
*Estimate
Imports from U.S. 58 96 180 +7%
Exchange Rates 128 138 150
Future Inflation Rate Assumed: 0%
1990 Import Market Shares: U.S.A., 28.6%; Italy 6.3%; Taiwan: 5.4%;
United Kingdom, 3.9%; France, 2.1%; Canada, 1.1%
Receptivity Score: Sailboats: 4 Powerboats: 5
In contrast with Japan, in the United States, there were 10.8 million boats
registered in the fifty states and territories in 1989, according to U.S.
Coast Guard figures published by the National Marine Manufacturers
Association (NMMA). However, in many states, smaller boats without engines
do not have to be registered, and the NMMA estimates that there were 15.6
million boats in use in that year. That works out to be around one boat for
every 15 persons, or 29 times the ownership in Japan.
Most Japanese boats are small, probably as a consequence of the difficulties
involved in finding marina space (see below). According to data produced by
the JBDC, approximately 13% of Japanese boats are below three meters in
length, 41% are between three and four meters, 22% are between four and five
meters, 9% are between 5-6 meters long, and 7% are between six and seven
meters long. Thus, 92% of boats are below seven meters long. Another 6%
are between seven and eight meters long, leaving only 2% of boats over eight
meters.
TABLE B
Estimated Market for Japanese
Recreational Boats
(Millions of Yen)
1988 1989 1990 Est. Growth '91-'93
Import Market 15,088 27,802 52,620 +7%
Local Production 33,365 42,201 45,246* +5%
Exports 14,080 10,352 8,742 -15%
Total Market 34,373 59,651 89,124 +8%
*Estimate
Imports from U.S. 7,365 13,308 26,934 +7%
Future Inflation Rate Assumed: 0%
1990 Import Market Shares: U.S.A., 28.6%; Italy 6.3%; Taiwan: 5.4%;
United Kingdom, 3.9%; France, 2.1%; Canada, 1.1%
Receptivity Score: Sailboats: 4 Powerboats: 5
Available data on boat ownership provides some interesting insights into the
boat market. Table C gives the results of a survey of 634 boat owners
conducted in September, 1989 by the Japan Shipbuilding Promotion Council
(Nihon Zosen Shinko Zaidan).
It would appear that the larger and more expensive a boat, the less able an
individual is to handle the expenses and the more likely it will be owned
jointly by friends or by a corporation. A 1990 Kazi Magazine boat users
survey (see below) confirmed the basic finding of this survey that many
boats in Japan are jointly owned.
TABLE C
Boat Ownership in Japan
(Percent)
Type of Boat Individual Jointly Owned Corporate
Motorboats 72 9 18
Fishing Boats 93 2 4
Sailboats (w/o engines) 64 28 8
Sailboats (w engines) 48 36 17
Personal Watercraft 100 - -
(jet skis)
TOTAL (average) 69 18 12
Source: Japan Shipbuilding Promotion Council
Leisure Time
It is frequently pointed out that Japan is well behind the U.S. and the rest
of the Western world when it comes to leisure activities. In many respects,
Japanese have less opportunity to participate in many leisure activities
than do the citizens of other countries. Japanese work longer hours and
they have fewer vacation days per year. They also have fewer leisure
facilities per capita than many other countries, and such facilities are
farther away from their homes.
According to Japanese Ministry of Labor figures compiled by the Leisure
Development Center, in 1987 the average Japanese in the manufacturing sector
worked 2,168 hours per year. This was 219 more hours than an American
worker, 230 hours more than a British worker, 523 hours more than a French
worker, and 526 hours more than a worker in West Germany.
These longer working hours naturally result in fewer leisure hours and less
vacation time. In 1988, only seven percent of Japanese companies and 30% of
Japanese workers had a complete five-day work week. While nearly 53% of
companies and 80% of workers had at least one Saturday off each month, the
majority still had to work several Saturdays. In addition to having fewer
weekend days off, the average Japanese worker gets nine days of vacation per
year versus 19 in the U.S., 23 in the U.K., 29 in West Germany, and 26 in
France.
However, the important thing to note is that things are changing in Japan.
In 1970, 95% of companies and over 80% of workers worked every Saturday, so
compared to that time, the present situation is far improved. Beginning in
1989, Japanese government offices began closing two Saturdays per month
while the banking and securities industries went to a complete five-day work
week. The pressure on other companies to move in this direction continues
to mount. There is discussion about eliminating Saturday school hours in
Japan, which would have a big impact on weekend family outings. The
government has an official target of achieving an 1,800 hour work week by
the year 2,000. The press reports that more companies are encouraging -
some even requiring - their employees to take all of their vacation days,
and to stagger vacations. It is clear that the trend in Japan is towards
more time for leisure and longer holidays.
Japan's Boating Conditions
As an archipelago, Japan is blessed with ample access to the sea. Japan has
some 33,000 kilometers of coastal shoreline. While this is considerably
less than the 85,500 kilometers which the U.S. (excluding Alaska, Hawaii and
the territories) has, on a per capita basis the comparison is similar. It
is said that no one in Japan lives farther than 2-3 hours from the sea by
road or rail. On the other hand, compared with the U.S., Japan has
relatively few lakes and rivers which can be used for pleasure boating.
Since nearly half of all boats in the U.S. are used on such bodies of water,
this suggests that boating in Japan is likely to develop along somewhat
different lines.
Further, Japan is situated in the temperate climate zone, and, with the
exception of Okinawa and a few of the southern islands, it has no areas such
as Florida or California where pleasure boating is a year-round activity.
In northern Japan, pleasure boating is mostly a summer activity. From Tokyo
to the southwest, the most enthusiastic boaters will be active throughout
much of the year, although the average boater will probably not be on the
water for six months of the year. In fact, for some boaters, the season is
only three months, for June in Japan is normally very rainy, and October
often brings typhoons, so many Japanese want to store their boats for the
winter by the end of September.
Since many Japanese boaters are boating in the ocean or in large bays open
to the ocean, they must cope with rougher waters than most American boaters
are used to. Boaters in the Tokyo area, where one of the largest population
centers is located, boat on Tokyo Bay, Sagami Bay or Suruga Bay, all of
which are open to the sea and subject to rapidly changing conditions. On
the other hand, Japan's Inland Sea, situated between the main islands of
Shikoku and Honshu, provides an area several hundred miles long and
averaging perhaps 40 miles wide where there are many islands and very good
boating conditions.
In conclusion, boating conditions in Japan are perhaps not ideal, but they
are sufficiently good to make boating an attractive leisure activity given
sufficient industry promotional and educational activities, affordable
boats, and adequate boat storage facilities. It can be expected that the
more soundly-built boats will be more suited to the Japanese market.
Marina Facilities
The boat storage situation in Japan is rather difficult to fathom. On the
one hand, official figures report that there are few marinas and few places
to put boats. On the other hand, boat sales in Japan have been soaring and
marinas advertise that they have space. Somehow, most boat dealers can find
their customers a place to put their boats. No one talks as though the
shortage of marina space is going to kill off the industry.
There is no doubt that Japan suffers from a lack of accessable and
reasonably priced marina facilities. A chronic shortage of proper marina
facilities has been an obstacle to the industry's growth to date, and it
will no doubt continue to be this way for some years. This is largely a
consequence of the density of population in Japan, although the fishing
industry in Japan also is an important obstacle, something that will be
discussed further below.
The official statistics on marinas in Japan and the comparison with the
United States show just how far behind Japan is in this area. According to
the National Marine Manufacturers Association, there were 8,320 marinas
(including boatyards, yacht clubs, dockominiums, parks and others) in the
United States as of the end of 1989. In contrast, as is shown in Table D,
Japan still has fewer than 400 marinas.
TABLE D
Marinas in Japan
Boat Public Private Total
Capacity Marinas Marinas
50 or less 3 111 114
50 to 100 3 99 102
100 to 200 10 87 97
300 to 400 8 23 31
400 to 500 7 9 16
500 to 700 3 4 7
700 or more 1 0 1
TOTALS 40 338 378
Source: Ministry of Transport, Ports and Harbors Bureau, Data as of July,
1990.
According to the Ministry of Transport, Japan's 378 marinas can accommodate
approximately 50,000 boats, with the 40 public marinas able to handle around
10,450 boats (an average of 261 boats each) and private marinas handling
another 40,000 boats (an average of 118 boats each). Not only is the number
of marinas small, but the individual marinas are also small. The largest
marina in Japan at the present time is the Enoshima Yacht Harbor, which
accommodates 1,050 boats.
The next largest marinas are only half that size. Japan's marinas are
distributed as follows: Hokkaido, 8; Tohoku, 10; Kanto (Tokyo area), 50;
Hokuriku, 30; Tokai, 53; Kinki (Osaka area), 84; Chugoku, 61; Shikoku, 41;
Kyushu/Okinawa, 40.
The marinas that Japan has are expensive, although perhaps not as expensive
as one might expect. Nationwide, the average annual cost of a private
harbor marina in 1990 was nearly $3,200, according to the results of the
Kazi Magazine survey mentioned earlier. This cost rises sharply for marinas
in urban areas. While the Kaji survey does not break down the cost of
private marinas by region, the survey reported the average costs for all
boats in Tokyo. See Table E.
TABLE E
Annual Boat Storage Costs in Tokyo, 1990
Percentage of Boats Yen Dollars
21 No Cost No Cost
5 Below 50,000 Below 370
7 50,000-100,000 370-741
24 100,000-300,000 741-2,222
17 300,000-500,000 2,222-3,703
16 500,000-1,000,000 3,703-7,407
7 1,000,000-1,500,000 7,407-11,111
2 1,500,000-2,000,000 11,111-14,815
1 Over 2,000,000 Over 14,815
Source: Kazi Magazine readers survey, March, 1991
We think that the official figures understate how many boats are actually
stored at marinas. There seem to be many marinas which have a large number
of boats stored on land, and these do not seem to be in the official
figures. The Japanese boating magazines frequently carry lists of marina
availability in Japan, and usually there are several hundred marinas showing
storage availability. Usually, however, this is land storage for small
powerboats or sailing dinghies.. And often, space is only available for
those who buy their boats through the marina. The March, 1991 issue of Kazi
Magazine listed 170 marinas which had a combined total of 4,671 available
spots. So there is storage, and the official data would lead one to believe
that there is not a single spot to be had.
The biggest problem appears to be the scarcity of marina space for large
boats in the Tokyo area. The public marinas have waiting lists of over ten
years, and the private marinas are full. In the event that a slip is
available, there are very high up-front marina membership payments. Wet
marina storage in the Tokyo area is probably not an option for any but the
very wealthy. In the more remote areas, however, marina space is available
at relatively reasonable rates. 150 miles from Tokyo in the Hokuriku
district on the Sea of Japan, for example, nearly 50% of boats are kept free
of cost, and only about 7% of boat owners pay over Yen 300,000 per year to
dock their boats.
The Fisheries Problem
It will be noticed that most of the above marinas are located in Japan's
large bays or in the Inland Sea where there is natural protection from waves
and weather. There are few marinas located on coastal areas directly
exposed to the ocean because of the expense of constructing breakwaters.
Most natural ports in Japan are designated fishing ports where the fishing
industry has extensive rights and where it is extremely difficult for
private developers to build marinas. There are also many problems between
recreational boaters and fishermen in places where the two activities
coexist. Fishermen complain of damaged nets, disruption from the wake from
pleasure boaters, bad manners, etc.
To understand the marina situation in Japan, it is essential to understand
the situation with Japan's fishing industry. It is difficult for most
Americans to appreciate, but the fishing industry in Japan is still
extremely important. Japan has been the world's leading fishing nation,
producing nearly 12.5 million tons of fish and seaweed, or 13% of the
world's total, in 1987. In terms of the production value of the catch,
coastal fishing in by far the most important, followed by offshore fishing
and then by deep-sea fishing.
A visit to many ports even near Tokyo finds large numbers of fishing boats
actively engaged in fishing activities.
Fishing is an ancient industry in Japan and it has always had a privileged
position. Following World War II, the Japanese Parliament in 1950 passed
the Fishing Port Law in order to ensure a stable and secure supply of marine
products and to promote efficient fishing operations. The law established a
system of fishing port management and official fishing port designation by
the Minister of Agriculture, Forestry and Fisheries (MAFF). Ports
designated as official fishing ports received development assistance,
subsidies and protection from the government. By 1956, some 2,611 ports
had been officially designated as fishing ports, and the number has slowly
grown over the years. It is worth noting that, on average, only 104 fishing
boats are based in each of Japan's 2,953 fishing ports. Table F summarizes
the fishing situation in Japan.
In addition to fishing ports, there are 1,095 other ports and harbors which
fall under the perview of the Ports and Harbors Law and which are important
in international trade and domestic transportation. Recreation is a low
priority for the administrators of these ports and harbors.
The relevance of this all for the recreational boating industry is that
because of the "rights" of the fishing cooperatives in these ports, it has
been extremely difficult (read "expensive") for private developers to
develop marinas. Fishing cooperatives have been able to successfully argue
that pleasure boating (as well as other projects) encroaches on their rights
to earn a livelihood, and they have been successful in forcing large
payments in return for giving up their rights to various fishing areas. It
has been reported that local fishing unions won an award of around $300
million when land-fill for the New Kansai International Airport displaced
fishing grounds near Osaka, and that another large amount of compensation
was paid to local fishing cooperatives when the new Tokyo Bay Bridge was
constructed.
TABLE F
Selected Data on Japan's Fishing
Industry, 1988
Fishing Ports 2,953
Fishermen 392,400
Fishing Cooperatives 3,303
Fishing Boats 308,161
Source: 1990 Fishing Port Guide Book, published by the National Fishing
Port Association (Zenkoku Gyoko Kyokai)
"Unattended" Boats
It was mentioned earlier that Japan's 378 marinas can "officially"
accommodate around 50,000 boats, and it was also mentioned that there are
around 275,000 recreational boats in Japan. The natural question which
arises is "Where are the other 225,000 boats?" Table G provides the
official explanation of where Japan's boats are kept and also presents the
Ministry of Transport's boat storage goals for the year 2000.
The "other storage" category in Table G refers to boats which are stored at
home, etc. Many inflatables, small dinghies, canoes and other small boats
fall into this category. The "unattended" category needs explanation.
These boats are also termed "illegally moored boats" (fuho keiryu) but
"extra-legal" rather than "illegal" might be the best description, for in
many cases the boats apparantly do not violate laws per se but merely are
moored by their owners in harbors, rivers and coastal areas administered by
government agencies where boat mooring is not authorized but where it is
also not forbidden. These rivers and other locations have thus become
unofficial marinas, and boat dealers will assist prospective boat buyers in
locating a mooring spot in a nearby river. Some boat dealers even collect
regular fees from boat owners to watch over their boats. The estimate of
120,000 "unattended" boats is the official estimate but whether this is at
all accurate is impossible to determine.
TABLE G
Boat Storage Arrangements in Japan
(Units)
Storage Estimate for Goal for Increase or
Location 1987 2000 Decrease
Marinas 49,000 180,000 +130,000
(Public Marinas) (8,000) (60,000) +(52,000)
Pleasure Boat Spots -- 60,000 +60,000
Land-Stored Boats -- 90,000 +90,000
Other Storage 79,000 70,000 -9,000
Unattended Boats 120,000 -- -120,000
TOTALS 248,000 400,000 +150,000
Source: Ports and Harbors Bureau, Ministry of Transport, September, 1988
Government authorities are not happy with the unattended boat situation, but
appear to have accepted that they can do little about it. The Ports and
Harbors Bureau complains that such boats cause problems for the management
and use of ports and rivers, but the problem has grown too big to be solved
by any enforcement measures. The boats simply have nowhere else to go and
the government itself would be criticized for not doing anything to provide
alternative facilities for these boats should they attempt to forbid boat
owners to use these areas. So the boat dealers continue to sell boats to
consumers and the latter continue to place them in Japan's rivers and
canals. Dealers and owners know where they can put boats where they will be
left alone, and where they cannot. Reportedly, warnings are occasionally
issued to some boat owners but the authorities involved seem to take no
other measures as long as the boats are causing no great harm.
New Marina Development
One of the major themes in Japan the past five or so years has been the
necessity to increase domestic investment and demand as a way to increase
imports and reduce Japan's huge trade surplus with the rest of the world.
This has been the oft-repeated demand of Japan's trading partners, and, at
the same time, many in Japan have called for programs which will improve
living standards for the Japanese people who have worked hard over the years
to create Japan's successful economy. These pressures from at home and
abroad have resulted in a wide variety of measures over the past several
years which should slowly alter the orientation of the Japanese economy
towards more consumption, a higher standard of living, increased imports,
and more leisure time and opportunities.
Marine recreation has been singled out as one of the most important areas of
emmphasis, and a variety of programs have been established to develop this
area. One important way in which this has been promoted is the so-called
"Resort Law," which is the nickname for legislation that was passed in May,
1987 to promote the development of resorts throughout Japan. This law
established special resort districts in every prefecture of the country so
as to meet the present and future expected demand for resort development.
Under this program, districts applied to the government to be designated as
resort areas, which entitles them to tax incentives, low interest loans and
accelerated public works assistance. Nearly all of Japan's 47 prefectures
have submitted applications for government resort area designation, and a
large number of construction projects are under way. While not all of these
are marine resorts, a large number are, and over time these resorts will
provide added opportunities for boating and create demand for marine
equipment.
The Ministry of Transport has been at the forefront of a number of plans to
reinvigorate Japan's waterfront, and in 1985 it drew up a plan called "Ports
and Harbors for the Twenty-First Century," under which a wide variety of
goals and plans for improving and upgrading Japan's ports and harbors to
make them more suitable for recreational usage were proposed. In September,
1988 the Ministry drew up a plan for upgrading Japan's marinas under which
concrete goals for increasing the number of marinas and other facilities
were advanced. The most important element in the plan is to increase the
number of pleasure boat berths in Japan to 400,000 by the turn of the
century and to eliminate all unattended boats. This plan is called the
Marine Ninty-Nine Program. Table G provides the details of the MOT plan.
Under this plan, the MOT will undertake a number of steps to improve the
marina situation. In addition to continuing certain ongoing upgrading
programs for public marinas, the Ministry is already proceeding with new
marinas in 33 ports around Japan, and, to deal with the unattended boat
problem, it is creating in 32 ports simple boat mooring facilities (called
"pleasure boat spots"). Further, it will select additional ports which will
be designated as important marine recreation areas and they will then be
entitled to receive public works assistance. The government will also
provide interest free loans and other subsidies to private developers and
public/private projects to develop new marinas.
The Ministry's plan involves the construction of approximately 140 new
public marinas, including 20 large-scale marinas which can accommodate over
1,000 boats, another 40 medium size marinas which can handle 500-1,000 boats
each, and another 40 smaller marinas which can accommodate around 100-150
boats each. On the private side, they envision another 270 new marinas
which would bring the number of private marinas to around 600. Considering
the trends toward larger cruisers which have greater cruising ranges, the
Ministry has a plan to place a series of "base marinas" more or less equal
distances apart around the coast of Japan. The MOT plans 800 "pleasure
boat spots" by the end of the decade. It seems very likely that some of
today's "unattended boat" parking areas will be turned into tomorrow's
"pleasure boat spots."
The other important element of the MOT's Marine '99 plan is a system for
storing boats on land when not in use and transporting them to the water on
special vehicles when the owners wish to use them. The MOT is planning that
by the year 2000, some 90,000 boats will be stored according to this "Hello
My Boat" plan. The Ministry conducted a feasibility study in 1987 and in
the fall of 1988 private companies conducted experiments which determined
the practicality of the plan. In 1989 the Japan Boat Development Center was
established with the help of 70 private companies to put the plan into
operation. In April, 1990 a model operation began at a Kawasaki Steel plant
site in Chiba Prefecture near Tokyo. Unfortunately, the early stages of the
operation have not gone well, and the organizers are restudying the matter.
There is considerable skepticism in Japan about whether the ambitious plans
of the MOT can be achieved. Constructing new marinas has become a difficult
proposition in any country, and it can only be even more difficult in Japan
with its scarce and expensive land and its complex bureaucracy. And the
fishing cooperatives are a powerful force with well-recognized rights to the
most attractive ports and waters.
But there are some reasons to be optimistic. Perhaps the main one is that
the demographics of the fishing industry suggest that it will not always
wield the monopoly over some of Japan's best ports and harbors that it
presently does. The fact is that the numbers of commercial fishermen in
Japan are declining at a fairly rapid pace. In 1980 there were some 457,400
individuals employed in the industry, but by 1988 this had declined to
392,400.
Prospects are that the number will continue to decline. According to data
from the Ministry of Agriculture, Forestry, and Fisheries, 23.3% of all
fishermen in 1988 were over the age of 60, while another 49.6% were between
the ages of 40 and 60. A career as a fisherman is not a very attractive
prospect for a young Japanese today.
There have already been a number of cases where fishing cooperatives have
accepted partial ownership in marinas in exchange for giving up their
rights, or a portion of their rights, to certain harbors and waters, and
both the MOT and the MAFF are encouraging more cooperation between the
industry and developers. A career in the marina business may seem
considerably more attractive to the children of a fisherman than a career on
a fishing boat, and this could be a way to keep some of the younger people
in Japan's fishing villages. The cynical view is that the fishermen are
merely holding out for large monetary payments, for, as mentioned earlier,
certain cooperatives have have been very successful at doing this in the
past. But there are limits and there is a growing view that the waters
belong to everyone, not only the fishermen.
In view of the government's support and growing public demand for more
leisure facilities, it seems safe to conclude that the number of marinas and
boat mooring facilities will continue to grow steadily over the next ten
years. Unfortunately, many of the new facilities will not be built where
they are most needed - in the Tokyo area - but in the rest of Japan where it
will probably become easier to find a place to keep a boat. Tokyoites will
continue to have a unattractive choices and high costs for storing their
boats. One task will be to find other solutions to answer the demand of
people living in the capital for boating activities. This might be in the
form of charters or joint-ownership at other locations in Japan,
time-sharing, or other solutions.
Boat Operators License System
The Ministry of Transport requires that an operator's license be obtained in
order to operate all boats with the exception of small dinghies and rowboats
without motors. There is a rather complicated system of five license
classes, but most pleasure boaters obtain either a Fourth Class license or a
First Class license. A Fourth Class license may be used for boats weighing
less than 5 metric tons. Further, the Fourth Class licensee may not take
his boat beyond certain calm water areas or farther than 5 nautical miles
offshore. For boats weighing more than 5 tons but less than 20 tons, a
First Class operator's license is required. This license permits boat
operation up to 100 nautical miles. To go beyond this limit, it is required
that a licensed engineer be on board. The parameters of these two license
classes determine how quite a few boats are designed an marketed in Japan,
for manufacturers are anxious that Fourth Class licensees owners can operate
boats in the thirty-foot range, while at the upper end of the First Class
license range boatmakers are careful that they do not produce a boat that
requires a commercial pilot to operate.
Both licenses require physical examinations, written tests, and boat
handling tests. Most Japanese attend one of a number of dozens of such
schools which offer boat license courses. For the Fourth Class license,
typically, there are 15 hours of classroom time for the written test and
then another 12 hours of classroom time to prepare for the boat handling
test. For the First Class license, the respective figures are 40 hours and
20 hours. The costs of taking these courses run around Yen 100,000 ($740)
for the Fourth Class course, and Yen 150,000 to Yen 200,000 ($1,111 - $1480)
for the First Class course. Licenses are good for five years and may be
renewed. Most boating schools also offer "boat license loans" so that
students can pay for their courses on an installment plan.
Many Japanese in the industry - although not the boat license schools -
complain that the license system is too strict and limits the number of
people who will be attracted to boating.
End User Profile
There are a number of fairly distinct market segments in the Japanese
recreational boating market. While the market may be well behind that of
the U.S., it is nevertheless large and mature enough to have been divided
into various segments for many years. Thus, in terms of market segments,
the Japanese market is not too different from that of the U.S. in most
respects.
One important difference between the Japanese market and the U.S. market is
that there is very little boat trailering in Japan. In the U.S. there were
5.9 million boat trailers owned in 1989, according to NMMA figures. This
corresponds to one-third of the number of boats in the U.S. In Japan, the
market is so small that the JBIA does not measure it. The reasons are
understandable. First, most Japanese have small houses on small lots.
Often there is no place for a car, let alone a boat trailer. Second, boat
trailer registration is expensive and the weight limit that a passenger car
may tow is 750 kilograms including the trailer. Third, roads, especally in
residential areas, are narrow and it would be impossible to navigate in many
neighborhoods with a trailer. Finally, there are few boat launching ramps
and few places to park a car with attached trailer while using the boat.
These points apply to Japan's urban areas; the situation is different in the
countryside and boat trailers are likely to become more common in the
future. There is a Japanese importer handling EZ Loader Trailers who has
developed a small dealer network and who advertises in the boat magazines,
but the market is so far very small.
In March, 1991, Kazi Company, Ltd., Japan's largest marine publisher and the
company which produces the monthly boating magazine Kazi, published the
results of an extensive boat user survey of Kazi Magazine readers conducted
in October, 1990. The company received 4,573 responses so the sample is
reasonably large. The types of boats used by survey respondents were as
follows:
Sailboats Motorboats
Sailing Dinghies 34.4% Runabouts 12.0%
Sailing Cruisers 60.7% Motorcruisers 54.0%
Sailboards 4.9% Small Fishing Boats 23.3%
Personal Watercraft 14.3
The profile of the users of the above boat categories based upon the
responses to the Kazi survey are presented below.
Sailing Dinghies
Average Age 35.9 years
Average Salary Yen 6.0 million ($44,444)
% Own own boat 42.4%
Average boat length 4.1 meters
Average annual upkeep Yen 170,000 ($1,260)
Average purchase price Yen 526,000 ($3,896)
Sailing cruisers
Average Age 43.3
Average Salary Yen 7.5 Million ($55,555)
% Own own boat 75.0%
Average boat length 8.2 meters
Average annual upkeep Yen 503,000 ($3,726)
Average purchase Price Yen 6,913,000 ($51,207)
Runabouts
Average age 44.2
Average Salary Yen 6.7 Million ($49,630)
% Own own boat 47.1%
Average boat length 5.1 meters
Average annual upkeep Yen 310,000 ($2,296)
Average purchase price Yen 1,800,000 ($13,333)
Motorcruisers
Average age 37.2
Average salary Yen 9.4 million ($69,630)
% Own own boat 66.4%
Average boat length 7.5 meters
Average annual upkeep Yen 953,000 ($7,059)
Average purchase price Yen 9,084,000 ($67,289)
Small fishing boats
Average age 38.3
Average salary Yen 6.3 million ($46,666)
% Own own boat 37.3%
Average boat length 5.6 meters
Average annual upkeep Yen 305,000 ($2,259)
Average purchase price Yen 1,843,000 ($13,651)
Personal watercraft
Average age 34.5
Average salary Yen 7.2 million ($53,333)
% Own own boat 12.7%
Average boat length --
Average annual upkeep --
Average purchase price --
Note: Dollar figures calculated at $1 = Yen 135.
Some of the other results of the Kazi survey are very interesting and shed
some light on the profile of Japanese boaters.
Average age & sex 37.8 years, 98% male
Residence Tokyo area, 36.3%, Osaka area 29.4%
Occupation Company employees, 47.5%; Company executives 14.6%;
self-employeed, 14.6%; government employee, 11.6%:
professionals, 4.7%.
Average salary Yen 7.3 million ($54,000)
Car Ownership 92% (15% foreign cars)
Residence Own single-family house, 44.9%; own
apartment, 8.7%; rent house or apartment, 19.7%.
Boating purposes Cruising, 79.9%; racing, 39.6%; fishing, 29.6%; high
speed boating, 12.0%; waterskiing and diving, 11.5%;
trawling, 10.2%; sleeping aboard, 7.0%; entertaining
guests, 5.5%.
Boat ownership Individual, 61.5%; group ownership, 31.6%; crew,
16.9%; club member, 11.5%.
Domestic boat price Yen 4.5 million ($33,333)
Import boat price Yen 13,009,000 ($96,363)
Engine type Outboard, 36.5%; I/O gasoline, 7.9%; I/O diesel,
11.1%; inboard diesel, 41.6%; inboard gasoline
1.8%.
Engine horsepower Below 10, 42.8%; 10-30, 24.0%; 30-100, 13.8%; 100-200,
11.2%; 200-400, 6.9%; over 400, 1.2%.
Average boating 23.1 days per year
Pct owning second 36% (45% of which are sailing dingies) boat
Respondents were asked about their plans for buying boats in the future.
Fully 67.8% responded that they planned to buy a boat over the next five
years. 32.7% of these hoped to buy a boat 8-10 meters in length, 16.5%
hoped to buy a boat 10-12 meters in length, and 6.3% desire to buy a boat
12-15 meters long. Around half expected to buy a second-hand boat, while
the remainder planned to buy new boats. Most were looking to buy a larger
version of the same type of boat they currently use.
RECEPTIVITY RATINGS
In Table A we assigned a score of "4" to end-user receptivity to
American-made recreational sailboats and a score of "5" to end-user
receptivity to American-made power boats, meaning that we judge that
Japanese consumers are very receptive to American-made sailboats and
extremely receptive to American-made powerboats. Our rationale is explained
below.
Sailboats
American sailboats are generally seen by Japanese sailers, dealers,
manufacturers and other knowledgeable industry specialists as being of good
design and of better quality than locally produced Japanese sailboats. Many
Japanese sailers start out with an inexpensive Yamaha sailboat and then in a
few years upgrade to a larger foreign-made sailboat. There are very few
locally produced sailboats in Japan above 10 meters, so those who want to
own a bigger boat have little choice but to look at a foreign-made boat.
Yet American-made sailboats are generally ranked below European sailboats in
Japan. They are seen as being generally less well-made, having more
problems with leaks and quality, and as having interiors which are less
attractive and sophisticated. Also, interior workmanship is often
criticized. Some Americn sailboats have had many problems in the Japanese
market, and this has hurt the reputation of all American boats. In general,
U.S. East Coast sailboat manufacturers are seen as having superior products
best suited to the rough Japanese seas. Additional information on the
competitive position of American sailboats is presented below.
Powerboats
Japanese consumers are extremely receptive to American powerboats. The
American powerboat industry is seen as being the world's leader, making many
models and types which are available nowhere else. America is seen as being
the land of leisure, and American powerboats seem to typify this image.
American powerboats have been dominant in the high end of the Japanese
market for some years. Japanese boating magazines are full of pictures and
articles about Americana powerboats in which the boats are analyzed and
discussed in great detail. In terms of price, American boats are very
competitive, as many American companies can produce in large volume. As in
the case of sailboats, Japanese will often start out with a small
domestically-produced powerboat and upgrade to an American powerboat at a
later date. Additional information on the competitive position of American
powerboats in the Japanese market is presented below.
BEST SALES PROSPECTS
We think that there are good sales prospects in nearly every category of
boat with the exceptions of sailing dinghies and small rowboats. American
and European companies are successfully marketing an extremely wide variety
of boats in Japan, whether they be small inflatables or large luxury
cruisers. Anything which is of exceptional quality or unique design has a
very good chance of being successful in Japan. On the other hand, products
of poor or uneven quality are unlikely to succeed, no matter what their
price. But a product does not have to be absolutely top quality to succeed
in Japan. A number of low price point products are very successful in
Japan. The main characteristic they share is appropriate pricing and
consistently good quality control. As the Japanese market continues to grow
and more middle class consumers are attracted, the growth will be seen in
the moderately-priced products rather than the luxury class items.
We think the following products will be in especially high demand over the
next two or three years:
*sailboats over 30 feet
*sportsfishing boats over 20 feet
*outboard sports boats over 18 feet
*luxury cruisers over 30 feet
*high performance boats 20-30 feet
PART III
C. COMPETITIVE SITUATION
Japanese Boat Production
According to figures produced by the Japan Boating Industry Association
(JBIA), in 1989 36 Japanese boat manufacturers produced 22,920 motorboats
valued at Yen 21.1 billion ($156 million). This was an increase of 12.3% in
production and 41.3% in value over 1988. Of these 22,920 boats, 63%
(14,470) were inflatables, with most of the remainder FRP. Of the
inflatables, 71% were exported, mostly to the U.S. and Europe. Table H
below provides details on domestic motorboat production. Table 9 at the end
of this report provides JBIA statistics on Japanese pleasure boat shipments
by major boat type for 1987-1989 as well as our estimates for 1990 and
1991. Tables A and B on pages 4 and 5 provide our estimates of the size of
the overall Japanese market for recreational boats.
TABLE H
Japanese Motorboat Production by Length
and Material, 1989
(units)
Boat Length FRP Rubber Poly- Aluminum Wood Total
(Meters) ethylene
Below 3 385 2,555 525 3,465
3-4 634 9,910 15 25 10,584
4-5 560 1,955 2,515
5-6 591 50 16 657
6-7 2,199 2,199
7-8 2,993 2,993
8-9 224 224
9-10 100 100
10-11 123 123
11-12 15 15
Over 12 45 45
TOTALS 7,869 14,470 525 31 25 22,920
Source: Japan Boating Industry Association
Although inflatables accounted for 63% of unit production, we estimate that
they accounted for only around 7% of shipment value, or around Yen 1.4
billion. Excluding inflatables, we estimate that FRP and other motorboat
shipments were valued at around Yen 19.7 billion ($146 million). The more
rapid increase in 1989 shipment value compared with production appears
related to increased production of larger and more expensive boats. Table I
shows recent trends in unit production and shipment value.
TABLE I
Japanese Motorboat Production and Shipments,
1985-1989
Year Production Pct Shipments Pct
(units) Increase (Yen 000) Increase
1985 20,261 -0.6 8,418,068 -19.7
1986 19,196 -5.3 8,458,298 +0.5
1987 19,667 +2.5 9,976,221 +17.9
1988 20,406 +3.8 14,947,009 +49.9
1989 22,920 +12.3 21,122,346 +41.3
Source: Japan Boating Industry Association
Of 8,450 non-inflatable powerboats produced in 1989, approximately 48% were
of the cabin type. This is a change from pre-1988 years, when the
production of cabin-type motorboats had outnumbered open-type motorboats.
In 1988 the numbers were nearly the same, and in 1989 production of
open-type motorboats exceeded cabin-types by 300 units. Of 8,450
non-inflatable motorboats, only 500 were longer than eight meters and only
183 exceeded 10 meters in length. Table J provides breakdowns by size and
type.
Sailboat shipments in 1989 totaled Yen 2.9 billion, with production at 1,621
units. 72% of sailboat unit production was of sailing dinghies less than
five meters in length. The remaining 451 boats were sailboats with cabins.
These accounted for around 28% of sailboat production, up eight percentage
points from 1988. 80% of cabin-type sailboats were between seven and nine
meters. Only 22 sailboats produced in Japan were more than ten meters in
length. All but two sailboats were constructed of FRP. Table K provides
sailboat production data for 1989.
Sailboat production has been falling in Japan over the past several years,
with volume falling more rapidly than shipment value, indicating that the
per-unit value has been rising. The largest decline in 1989 production was
in the 4-5 meter length sailing dinghy class, indicative of a trend away
from smaller sailboats. Since 1985, the average length of a
domestically-produced sailboat has risen from 5.0 meters to 5.7 meters in
1989. The JBIA reports that increases in
TABLE J
1989 Japanese Motorboat Production by Boat Type
(units)
Boat Length Boats With Boats Without Inflatables Total
(Meters) Cabins Cabins
Below 3 910 2,555 3,465
3-4 674 9,910 10,584
4-5 279 281 1,955 2,515
5-6 242 365 50 657
6-7 1,192 1,007 2,199
7-8 1,855 1,138 2,993
8-9 224 224
9-10 100 100
10-11 123 123
11-12 15 15
Over 12 45 45
TOTALS 4,075 4,375 14,470 22,920
Source: Japan Boating Industry Association
TABLE K
1989 Japanese Sailboat Production by Boat Type
(units)
Boat Length Sailboats With Sailing Total
(Meters) Cabins Dinghies
Below 3 193 193
3-4 208 208
4-5 766 766
5-6 6 3 9
6-7 3 3
7-8 242 242
8-9 117 117
9-10 61 61
10-11 14 14
11-12 6 6
Over 12 2 2
TOTALS 451 1.170 1,621
Source: Japan Boating Industry Association
the 7-8 meter sailboat category are also helping to raise the average
length. Table L shows the trends in unit production and shipment value from
1985 to 1989.
TABLE L
Japanese Sailboat Production and Shipments,
1985-1989
Year Production Pct Shipments Pct
(units) Increase (Yen 000) Increase
1985 2,119 -29.5 2,634,884 -4.0
1986 1,938 -8.5 2,585,590 -1.9
1987 1,887 -2.6 2,471,433 -4.4
1988 1,861 -1.4 3,011,290 +21.8
1989 1,621 -12.9 2,862,704 -4.9
Source: Japan Boating Industry Association
Another category of pleasure boats produced in Japan are collectively termed
"rowboats" and includes boats with oars, pedalboats, canoes and the like.
These account for around 5% 1989 domestic shipments by value. Table 9
provides figures for 1987-89. 40,696 rowboats were produced in 1989, of
which 85% were rubber inflatables, mostly between two and three meters in
length. Table M shows unit production and shipment value from 1985 to 1989.
Personal watercraft (jet skis or water scooters) shipment values for 1987-89
are shown in Table 9 at the end of this report. This is a fairly new market
in Japan but it has been a major product area for two Japanese companies,
Yamaha and Kawasaki, for some years. When these products were first
developed in the 1970's, the major market developed in the United States and
Kawasaki began building its "Jet Skis" in the U.S. Yamaha also entered the
personal watercraft market but by exporting from Japan until it started
local production in the U.S. in 1989. When the Japanese market began to
develop in the mid-1980s, Yamaha could supply it from its plant in Japan and
Kawasaki began exporting to Japan from its U.S. plant.
According to JBIA data, production of personal watercraft in Japan amounted
to 19,019 units in 1987, 39,487 units in 1988, and 40,409 in 1989. Since
Kawasaki does not produce personal watercraft in Japan, presumably this
production is nearly all Yamaha's.
Table 9 provides our estimates for domestic shipments for 1990 and 1991. We
expect a decline in total production in 1991 due to a further shift in
offshore production of personal watercraft. However, we estimate that in
1992, domestic production will increase again, so that for the next three
years we are estimating average growth of 5% for domesstic production. See
pages 4 and 5 for our estimates.
TABLE M
Japanese Rowboat Production and Shipments,
1985-1989
Year Production Pct Shipments Pct
(units) Increase (Yen 000) Increase
1985 43,279 +10.5 1,946,557 -3.2
1986 41,464 -4.2 3,094,299 +58.9
1987 37,208 -10.3 1,862,278 -39.8
1988 24,223 -34.9 1,609,767 -13.6
1989 40,696 +68.0 1,874,867 +16.5
Source: Japan Boating Industry Association
Domestic Exports
Exports of Japanese pleasure boats from 1988 to 1990 are shown in Table 10.
Because of the introduction of the harmonized system (HS) of tariff codes in
1988, the export figures for 1987 and 1986 are not on the same base, but
they are shown in parentheses in Table 8. Presumably the totals are
comparable. It may be seen that exports in all categories are declining.
Obviously the rise in the value of the yen has hurt the competitiveness of
many Japanese boats. Exports of powerboats and sailboats have nearly
disappeared (most of those that remain are being exported to the
Asia/Pacific region), inflatables are declining gradually, and the category
"Other Pleasure Boats" is declining steadily after increasing sharply in
1987 and 1988. We think that this category is primarily personal watercraft
and the decline seemed to coincide with the Yamaha's commencement of local
production in the U.S. Engines and drive trains are still being exported
from Japan for assembly with U.S.-produced hulls, but these exports would
show up in other HS categories.
Perhaps 80% of Japan's boat exports are accounted for by Achilles, the large
inflatable producer, and Yamaha, the large personal watercraft producer.
For the above reasons, we estimate that total Japanese pleasure boat exports
will continue to decline by 15% per annum over the next three years. See
Tables A and B on pages 4 and 5.
The Japanese Boat Manufacturers
As mentioned earlier, some 36 Japanese boat manufacturers took part in the
JBIA's 1989 survey. While there seem to be a few manufacturers which were
not included, they are very small companies. In fact, most of the
participants in the JBIA survey themselves are small as well. Japan really
has only one manufacturer which dominates the boatbuilding industry. That
company is the Yamaha Motor Company.
Yamaha
The Yamaha Motor Co., Ltd. in 1955 was spun off from its then parent, Nippon
Gakki, which is now known as Yamaha Corporation, the world's largest musical
instrument manufacturer. Today, Yamaha Motor is a publicly listed company
but it is still part of the Yamaha group, with Yamaha Corporation owning 33%
of its outstanding stock.
Yamaha Motor (below "Yamaha") began its independent existence as a
motorcycle maker but over the years diversified into a wide variety of
mainly leisure products. Today, in addition to marine products, the company
makes automobile engines, snow-mobiles, generators, golf cars, diesel
engines, all-terrain vehicles, and many other products. For the year to
March, 1990, parent company net sales amounted to Yen 413 billion (over $3
billion). Consolidated sales were nearly Yen 600 billion ($4.4 billion).
Marine division sales reached Yen 101 billion ($750 million) in the fiscal
year to March, 1990. This division produces outboard and inboard engines,
all types of dinghies, motorcruisers, fishing boats and sailboats, personal
watercraft, small and medium-size commercial fishing boats, Japanese-style
boats, sightseeing boats, swimming pools, marine clothing, and other items.
Exports amounted to 55% of this division's total sales, but export growth
was flat in the year to March, 1990 while domestic sales increased by 21% to
Yen 45.6 billion.
During the six months to September, 1990, marine product sales grew by 19.7%
over the year-earlier six month period. During this period, domestic sales
grew by 27.5%, reflecting the strong domestic market during 1990, and
exports grew by 11.4%.
In addition to its own boat manufacturing and sales activities, Yamaha is
import agent for Trojan Yachts, Tiara Sportboats, Pursuit sportsfishing
boats, Thunderbird Formula speed boats, and sailboats manufactured by the
French company, Jeanneau.
Yamaha also is engaged in marina operation and development and many boating
industry educational and promotion activities. It operates 230 boat license
schools throughout Japan and many other schools to teach sailing,
motorcruiser operation, sportfishing, personal watercraft operation, and
other activities. It also operates marine clubs and is opening a boat and
yacht rental operation.
Yamaha also sponsors a number of yacht races, the foremost of which is the
Yamaha Osaka Cup, a sailboat race from Australia to Osaka, Japan. In
addition, the company organizes or co-sponsors a large number of races,
cruises, jamborees, etc. all around Japan. Yamaha helped to construct
Japan's entry in the America's Cup race and is an official sponsor of the
event.
Since producing its first FRP boat in 1960, Yamaha has steadily built up its
pleasure boat business to the point where it dominates the market in Japan
for such boats under 10 meters. Recently, as Japanese consumers have been
showing great interest in larger cruisers and sailboats, Yamaha has begun to
produce larger boats. At the 1991 Tokyo International Boat Show, Yamaha
introduced a new 60 foot luxury motorcruiser, a 50 foot motoryacht, a 51
foot sportfishing motoryacht, a 38 foot sportfishing boat, and a 38 foot
cabin cruiser. In the sailboat area, the company brought out a 34 foot
cruiser. Thus, Yamaha is clearly aiming at the entire market, and shows no
signs of leaving the high end of the market to foreign manufacturers.
It is extremely difficult to estimate Yamaha's share of the domestic boat
market. It is often said in Japan that Yamaha has a market share of around
50%, but it is very difficult to document this in view of the lack of public
data. In view of the fact that boat imports grew by over 500% between 1987
and 1990, considerably more rapidly than domestic boat production, it seems
likely that Yamaha's overall share has declined over this period. We think
that Yamaha's share in boats under 30 feet may be as high as 70%, but in
boats above 30 feet their share is very likely less than 10%.
Other Japanese Boat Manufacturers
Achilles Corporation. Japan's largest manufacturer of inflatable boats. A
high percent of sales are exported to the U.S.
Nissan Marine. This is the Marine division of Nissan Motor Co., Ltd.
Nissan's involvement with the marine industry began when it entered the
marine engine market in 1970. In 1973 Nissan began to manufacture power
boats and today has a full lineup of small and medium-size cruisers and
fishing boats up to 27 feet, and the company has plans to bring out a 33
footer. Nissan also produces outboards and began exporting them in 1985.
Inflatables are another product area the company has entered. Nissan
operates four marinas in Japan as well as boating schools. Marine sales
appear to be around one-fifth those of Yamaha. Nissan manufactures two
models of J-Boats (the J-24 and the J-29) in Japan under license from the
American manufacturer, and imports Blackfin and Sport-craft boats.
Yanmar Diesel. This is another company that has taken its engine expertise
and applied it to pleasure boats. The company established a marine leisure
sales division in mid-1988 and in early 1989 set up a separate pleasure boat
sales company. It manufactures a line of eight inexpensive fishing cruisers
and runabouts, the largest of which is a 33 foot fishing cruiser with flying
bridge. The company also is a dealer for Bayliner cruisers, Ferritti boats
from Italy, and Wetjets, personal watercraft from WetJet International of
the U.S.
Okumura Boat Co., Ltd. Based in Hyogo Prefecture, the company claims to be
the world's largest producer of Snipe sailing dinghies, having built a total
of 3,500 of them since 1970. The company also produces other sailing
dinghies as well as a small number of 30 foot sailing cruisers. In 1988
Okumura began to market imported sailboats and to date has sold around 50
boats. Okumura has 20 employees.
Okazaki Shipbuilding. Produces 30 foot sailboats, a 33 foot motor sailer,
and a 37 foot sloop. Also imports Dutch Trintella sloops, and a number of
other Northern European sloops and motor sailers.
Mitsubishi Heavy Industry. A newcomer to recreational boats, the company is
presently marketing one 25 foot powerboat and two 28 foot cruisers with
flying bridges. The company also imports Westerly sailboats from the U.K.,
Tresfjord powerboats from Norway, Viking motorcruisers from the U.S., and
luxury motorcruisers from White-water International of the U.K.
New Japan Yacht Co., Ltd. Based in Shizuoka, the company produces a range
of sailboats from 18 feet up to 36.5 feet. It also markets boat fittings
and accessories. The company runs color ads for its Mirabelle 375, a 36.5
foot sailing cruiser, which emphasize that the boat is made in Japan and
designed to be especially strong for the "special" conditions found in
Japan's waters. The company also produces a series it calls Libeccio which
has an extremely deep cockpit for safety.
Step Marine. Produces 30-40 foot sailboats with center cockpit or pilot
house. Claims to have built 100 of these sailboats. Also builds a 30 foot
houseboat. Located in Kanagawa Prefecture.
Tsuboi Craft Co., Ltd. A Nagoya-based manufacturer with 10 emmployees,
Tsuboi produces two lines of racing-oriented cruising sailboats between 28
and 33 feet. The company strives to build high performance cruisers which
fit Japanese consumer tastes.
In addition to the above, there are at least another five or six small
producers of sailboats, ten or so more other companies producing power
boats, and at least 20 small manufacturers of sailing dinghies. It may be
seen that with the exception of eight or ten manufacturers, boatbuilding in
Japan is not much more than a family enterprise at the present time.
Imports
As may be seen in Tables A and B and in Table 4 at the end of this report,
pleasure boat imports have been soaring over the past several years. Total
imports in 1990 amounted to Yen 52,620 million, an increase of 89% over
1989. Imports rose by 84% in 1989, 81% in 1988 and 130% in 1987. Between
1986 and 1990, imports increased by 14.5 times. We estimate that in 1990,
imports accounted for 59% of the total Japanese pleasure boating market.
We think that there are a variety of reasons for this rapid expansion of
imports:
1. The rise in the value of the yen since 1985 has made foreign-made boats
priced in yen much cheaper.
2. The elimination of heavy commodity taxes effective April, 1989 also
permitted the domestic prices of imported boats to decline. (See below.)
3. The Japanese economy has been growing rapidly during these years, giving
consumers confidence to make large purchases.
4. Japanese have gradually been having more free time and are more
interested in leisure activities. This has attracted many new companies
into leisure businesses, including the pleasure boating industry. These
companies have been agressively looking around the world for attractive
products to bring into Japan.
5. The Japanese government's programs to promote imports may have provided
a more positive environment for both importers and consumers.
6. The absence of a large thriving domestic industry, particularly in the
market for larger boats, has meant that there has been no alternative
domestic source.
7. Supplying the Japanese market for personal watercraft from its U.S.
plant has allowed Kawasaki to make a contribution to Japan's imports.
Outlook for Imports
It is extremely difficult to forecast the future outlook for imports. We
think that over the long term, the Japanese market for recreational boating
will continue to grow rapidly as Japan catches up (or at least partially
catches up) with Western levels of marine recreation. However, we think
that it is unlikely that imports will continue to grow at the pace they have
over the past five years, primarily because the absolute amount of imports
has become so large but also because the past five years have been very
unusual in terms of economic growth and currency fluctuations. Further, the
outlook for 1991 is somewhat negative because of slower economic growth in
Japan and around the world. We think that imports are likely to remain flat
in 1991, or even decline somewhat from 1990's unusually high level.
However, we think that growth can resume again in 1992 and 1993, so that for
the three year period 1991-93 we are estimating average annual growth of
around 7%.
U.S. Imports
Table 5 at the end of this report presents Japanese pleasure boat imports by
country for 1988-90. It may be seen that U.S. imports account for around
half of all pleasure boat imports into Japan. The percentage of American
imports among total imports has remained more or less constant over this
time. We estimate that the American share of the entire Japanese pleasure
boating market was 28.6% in 1990, compared with 21.4% in 1988 and 22.3% in
1989. The factors behind U. S. import growth are the same as those listed
above. We expect that imports from the U.S. will grow the same as total
imports over the next three years, or at an annual rate of 7%.
Imports of American powerboats are slightly over half of all powerboat
imports and, since this is the biggest market segment in Japan, are the main
source of the U.S. import strength (see Table 7). Imports of power boats
from Italy account for 16% of powerboat imports, followed by those from
Taiwan (10.9%), the United Kingdom (7.6%) and Sweden (5.7%). In the
category "Other boats for pleasure and sports use" (Table 8), imports from
the United States constitute 84% of all imports. We believe that over half
of this category is personal watercraft manufactured by Kawasaki in the
United States. However, in sailboats, the American share of total Japanese
imports is only 14.4%, which was second behind France, which had 28% of the
total. The United Kingdom is third, with 10.9%. See Table 6.
For reference, U.S. Department of Commerce statistics on American exports to
Japan are provided in Tables 1-3, and Tables 13-15. In general, the U.S.
totals are close to the Japanese figures, but there are differences because
the U.S. exports are broken down in six categories whereas the Japanese
imports are divided only among four categories. The figures would not be
expected to track exactly due to differences in timing and because the
Japanese import figures would reflect freight and insurance costs.
The U.S. strength in the Japanese powerboat market, as compared with the
sailboat market, seems to be related to the fact that vis-a-vis their
European competitors, American boat manufacturers are relatively stronger in
powerboats than they are in sailboats. Over 95% of the huge U.S. $6.0
billion market for pleasure boats is powerboats, so there are a large number
of American powerboat manufacturers producing a huge variety of products at
many different price points. On the other hand, the European recreational
boat market is much more of a sailboat market, and European sailboats are
thought by Japanese sailers to be of generally better quality and design.
Since Europeans are also much more accustomed to exporting and doing
business in foreign markets than are American manufacturers, it may be that
they have paid more attention to the Japanese market than have American
sailboat makers, who have a huge market at home.
American Suppliers
Virtually all American motorboats and sailboats that are sold in the
Japanese market are imported by Japanese agents and sold through Japanese
distributors. This seems to be true for European boats as well. There do
not appear to be any American boat manufacturers which have established
their own subsidiaries or distribution.
There are dozens of types of American boats being sold in the Japanese
market. There is no data available on market shares, but nearly all of the
major American boat manufacturers have some kind of distribution in the
Japanese market. Particularly prominent American makes in Japan in
powerboats are: Albin, Bayliner, Bertram, Carver, Four Winns, Grady-White,
Hatteras, Hinckley, Sea Ray, and Wellcraft. In sailboats, Island Packet,
J-Boats, Pearson and Sabre are prominent.
Among non-American powerboats, Sweden's Storebro is very prominent in the
luxury cruiser category. The Italian-made Riva and Ferretti are also
well-known, as is Australia's Precision Yachts. President Yachts from
Taiwan is also prominent. In the sailboat category, Beneteau is the
dominant company, while other well-known brands in Japan are Jeanneau and
Gib'sea from France, Contest and Winner from Holland, and Hans Christian and
Westerly from the U.K.
COMPETITIVE FACTORS IN THE MARKET
The Japanese pleasure boating market is sufficiently diverse that there is
no one formula for success. There are many niches, many different price
points, and many approaches. The following are some general comments on
important factors for succeeding in the market.
In the high end of the market, whether for powerboats or for sailboats,
price is less important than quality and service. Buyers of luxury yachts
in Japan are the very wealthy or corporations who will have their boat
serviced and cared for by a marina providing all services. In this market,
manufacturer's reputation, past performance, dealer reputation, and service
system will be most important. Owners will demand the very best quality,
particularly for the interior. Owners will expect that their boats will
never leak from Japan's frequent and heavy rains. They will expect the
interior woodwork to be perfect. In general, yachts which have had the best
reputation abroad and which have a Japanese dealer with good connections and
reputation will be the most successful. Many Japanese industry sources
indicate that European firms have the best record of providing the kind of
quality and service expected in this market segment. Initial selling price
is high in Japan because the dealer will have to look after the boats he
sells for a long time.
Price is much more important in the middle and lower part of the market, of
course, but reputation, quality, dealer and service are still very
important. The most successful companies in Japan are those which are able
to incorporate changes which their Japanese dealers request, and which are
able to respond immediately when there are problems. But the Japanese often
point out that their approach to manufacturing is to make sure there are no
problems to begin with, not just to be good at fixing problems after they
occur. Thus, quality control on products sent to Japan is extremely
important. Once products or companies get bad reputations in Japan, it is
extremely difficult to get a second chance.
A manufacturer aiming at any kind of volume sales in Japan needs an agent
who can create a nationwide dealer network. Japanese language promotional
materials must be prepared and regular advertising in the appropriate
magazines is necessary. Depending on the type of product, an agent with
connections to or relations with marinas might be important. After-sales
service must be available. Japanese consumers are very conscious of a
company's name and reputation. Buying a product like a boat is like joining
a club in Japan, and people do not want to join a club with a bad
reputation, even if it is cheap.
The universal advice from Japanese industry sources and successful foreign
firms in Japan is to do your homework before you act and make sure that you
are tying up with the right company before making any commitments. Most
foreign firms with relationships in Japan are being represented by a
Japanese dealer who approached the foreign company and asked to represent
them in Japan. In most cases, the foreign company agreed and a relationship
was launched. Some relationships worked out well and some did not. In many
cases, a better agent could have been found if the foreign manufacturer had
taken the time to learn about the market and looked around for a more
suitable agent. One problem today is that there are already many tie-ups,
and so a newcomer may have to look harder.
Additional information on the distribution system is presented below in the
section on distribution and business practices.
PART IV
D. MARKET ACCESS
Import Climate
There are no longer tariffs on pleasure boats imported into Japan.
Commodity taxes ranging from 15% to 30% on imported boats that existed in
the past were eliminated in 1989. There are no quotas or other
restrictions. There is a three-percent consumption tax which is levied on
all transactions in Japan.
Japan maintains some rather onerous inspection requirements which must be
met before boats may be registered in Japan. While the standards apply to
Japanese manufacturers as well as foreign manufacturers, the requirements
are well known to the Japanese companies and are taken into account when
boats are designed for use in Japan. In addition, there is a system of
inspection at the time of manufacture which foreign manufacturers who wish
to take advantage of it can use.
Most foreign-made boats, however, are not designed with these standards in
mind, so when they are first brought into Japan, they must go through a
time-consuming and expensive process of being inspected. The authorities
require detailed drawings and physically inspect hulls, engines, propeller
shafts, fuel tanks, navigation lights, etc. They also have standards for
buoyancy and stability. In the past, there have most often been problems
with propeller shafts and fuel tanks, according to Japanese officials
involved in the inspection process. Boats with commonly used materials and
engines seem to have the least problems. But when the Japanese authorities
see something new - a different construction material or a new design - they
will not know how to cope with it, and it can be a big problem.
Boats measuring less than 12 meters in length are inspected by an
organization called the Japan Craft Inspection Organization, which is an
official inspection organization authorized to inspect smaller boats on
behalf of the government. Boats over 12 meters are inspected by the same
Ministry of Transport inspectors who inspect large freighters and tankers.
This latter inspection system is termed the "JG" (for Japanese Government)
inspection, whereas the former system is called "JCI" inspection.
There is a procedure for having certain key parts of the inspection done in
the manufacturer's plant in the United States. "Letters of Compliance" can
be issued which will shorten the JCI inspection in Japan. These local
inspections are handled by a Japanese organization called the Nihon Kaiji
Kyokai, which has offices in several cities in the United States.
In March, 1991 the Ministry of Transport published a 421-page book entitled
"Handbook For Those Who Intend To Export Boats To Japan." which outlines
the relevant laws, regulations, rules and notices which relate to pleasure
boat import procedures and inspections in Japan. This handbook is a very
useful guide to any company presently exporting to Japan or interested in
doing so in the future. Much trouble can be averted by knowing in advance
the standards which must be met in order to have boats registered in Japan.
This book can be obtained from the JCI or the Ministry of Transport at the
addresses shown later in this report, or from the Ship Machinery Department
of the Japan External Trade Relations Organization (JETRO) New York office,
located at 44th Floor, McGraw-Hill Building, 1221 Avenue of The Americas,
New York, NY 10020-1060, telephone (212) 997-0400.
Distribution and Business Practices
As mentioned, most if not all American boats sold in Japan are handled by
local Japanese agents. These agents fall into a number of categories.
1. Specialized Importers. Mostly small operations, these companies sell a
limited range of specialized products to a fairly narrow group of
experienced boaters. Sometimes they succeed in developing a large number of
dealers, but frequently they have only one or two tiny offices. The
distribution of sailboats is dominated by companies in this category. They
are often run by an experienced boater who has turned his hobby into a
business. They mostly sell to people who own a Yamaha sailboat and who wish
to upgrade to something more sophisticated. These agents rely on their
detailed product and customer knowledge, and their personal connections with
marinas and others in the industry to succeed. Examples of companies in
this category are Ocean First Marine, 135 Degrees East, and Fusion, Inc.
There are perhaps 50-75 companies in this category.
2. Boat and Engine Manufacturers. All of the large Japanese boat
manufacturers and many of the smaller ones also act as import agents for
larger foreign boats. The same is true of the engine manufacturers such as
Komatsu Diesel and Yanmar. There are a number of benefits for these
companies. It allows them to take advantage of the growth in a market
segment where they do not have any of their own production. It allows them
to utilize their existing sales channels for more products. It helps their
sales force become more knowledgeable. Perhaps most important, it allows
them to learn from the foreign companies whose products they are handling.
For example, Yamaha handles Jeanneau sailboats, and this helps Yamaha in its
own sailboat manufacturing. By handling Pursuit fishing cruisers, Yamaha
also picks up important experience in this segment. From the standpoint of
the foreign manufacturer, having a large Japanese manufacturer as an
important agent means having an instant network of sales and service, but
the foreign product is just one of many products handled and the sales staff
is not likely to be very knowledgeable about the product. Also, the foreign
maker needs to consider whether the manufacturer will eventually begin to
make similar products and no longer need the foreign products. As
mentioned, Yamaha also imports boats from Trojan, Formula, Tiara and
Pursuit. Nissan Marine imports Blackfin and Sport-craft fishing boats as
well as J-Boat sailboats. Other examples are listed in the section on
domestic manufacturers earlier in this report.
Komatsu Diesel, which manufacturers a number of models of a 36 foot fishing
cruiser, is now importing boats from Shamrock (USA), Scand Boats (Norway),
Mochi Craft (Italy), Southern Ocean Yachts (Australia) and Kineo (Austria).
3. Automobile Import Companies. Two Japanese companies specializing in
importing luxury foreign cars have become powers in boat importing: Yanase &
Company, Ltd. and Seibu Motor Sales Co., Ltd. Yanase has gained a solid
reputation in Japan for not only importing foreign cars but for providing
good service for them. The company has a nationwide network of sales and
service outlets and the company is following a similar strategy for handling
boat imports. Yanase presently handles Wellcraft, Hatteras, Carver,
Mirrocraft, and Stratos. It is also the Japan representative for Johnson
outboard engines and Cobra engines.
Seibu Motor Sales handles Saab, Peugeot and Citroen automobiles and is
making a major commitment in the marine area. Part of the huge Seibu Saison
Group which includes department stores, discount stores, hotels, and many
other operations, the company now handles Sea Ray, Princess and Bertram
yachts. In addition, the company is sole agent in Japan for Volvo Penta
marine engines, and it powers all of its Sea Rays and Princess boats with
these engines. The Seibu Group owns a number of marinas and is involved in
developing others. These marinas act as dealers for boats imported by
Seibu, and the company also has dealers and service centers at other marinas
around the country.
4. General Trading Companies. Most of Japan's large trading companies have
entered the boat import business. Mitsui Bussan, which handles Feeling,
Baltic, Dynamique and Jeantot sailboats and Ifni, Sonata, Gallart, Phoenix,
Jeantot and Kavalk powerboats, appears to be the largest trading company in
the business, but C. Itoh, Mitsubishi Corporation, Sumitomo Corporation, and
most of the other well-known trading companies have entered this market.
There are two views on these companies and their prospects. In the early
1970's, most of the trading companies rushed into the pleasure boat industry
when the market was hot, but a number of them pulled out when things slowed
down after the oil crisis. Critics point out that Japan's large trading
companies are skilled at importing commodities but are not good at products
which require specialized sales and product after-sales service. On the
other hand, it can be argued that the trading companies have the resources
to stick with the business, have a need to diversify into new growth areas,
and have the kind of connections which are essential for developing new
marina facilities around Japan.
5. Other Miscellaneous Companies. The rapid growth of the industry has
attracted all sorts of new entrants, most of which believe that they have
some existing strength which will allow them to grab a piece of the market.
For example, Seiyo Continental Hotels, Ltd. have become the sole agent for
Camper & Nicholsons, the U.K. maker of 100 foot plus luxury yachts. The
hotel company explains that it is aiiming to develop "an elegant,
executive-class concept of marine leisure." Tokyu Department Store has
recently become agent for Sealine of the U.K. and Delta of the U.S.
Matsushita Electric Industrial has tied up with Tobi Dekor, the Japanese
sole agent for Sweden's Storebro Yachts, and is presently handling the
import end of the business. Toyota Motor Corporation has been conducting a
detailed, year-long study of the marine industry to determine if it is
attractive enough for it to become involved. Large Japanese companies
diversifying into the marine business could be attractive partners or agents
for American boat manufacturers which have not yet become involved in the
Japanese market.
In most cases, foreign-made boats are imported through sole agents,
particularly in the case of European makers, but there are a number of
important exceptions. The Japanese importers naturally prefer an exclusive
import agreement, arguing that the market is too small for multiple agents,
that there will be too much price cutting, etc. But some American companies
such as Bayliner and Sea Ray, have several agents in Japan which market
nationwide, and this seems to have increased the manufacturer's volume. To
some degree, the interests of the manufacturer and the importer are in
conflict on this issue. There is no simple answer for which arrangement is
best, but it is important to know that sole agent agreements are not always
the rule, and that just because a prospective agent demands such an
arrangement, it is not always necessary to give in to such a demand.
In view of the scarcity of marina space, the marinas in Japan have very
powerful positions. They are no longer merely parking spaces for boats, but
they look for every opportunity to find additional sources of revenue. One
of the most important business activities in Japan for an importer is to
enter into relationships with marinas. Importers attempt to recruit marinas
as dealers, but the number of marinas is small and the number of importers
is large. The large manufacturers such as Yamaha have entered the marina
development business in order to increase dealers and to be able to locate
service centers at certain marinas. Many private marinas in Japan will
provide space only to customers who have bought boats from them. Other
marinas will require rebates or commissions ranging from 10-20% to put
another dealer's boat in their marinas.
One problem which the industry faces in Japan is so-called "parallel
importing" (in Japanese, heiko yunyu), whereby individuals or small trading
companies acting on behalf of a customer, purchase boats directly from
overseas dealers and import them into Japan outside the normal Japanese
agent's channels. In this way, they can avoid the dealer's mark up and save
a considerable sum. Since retail prices in Japan can be considerably higher
than the U.S. retail price, the savings on a large boat can be
considerable. The owner will not be able to have his boat serviced by the
authorized dealer in Japan, but the large savings have made this activity
profitable for a few companies. There is nothing that can be done about
this practice in Japan, as it is not illegal, and dealers can only ignore
it. It is not a widespread practice and is likely to continue as long as
there is a large gap between pricing in Japan and prices overseas.
It is difficult to generalize about Japanese boat pricing. Japanese agents
and dealers explain that costs are higher in Japan and that Japanese
customers require more after-sales service, so their prices have to be
higher. Markups of 50-80% are common, although much depends upon the dealer
and the model. Parallel imports and heavy competition from so many
different products on the market are likely to continue to bring prices
down. There is also a large market for used boats, which also tends to keep
prices of new boats in line.
One Japanese agent for a well-known American powerboat runs an ad in
Japanese boating magazines claiming that the prices he charges are the same
as the American retail price plus freight, insurance and customs clearance
charges, which add about 15% to the American retail price.
Key Industry Contacts
Government
Mr. T. Takeuchi
Manager
Inspection Department
Japan Craft Inspection Organization
Ichigaya Building, 8th Floor
2-6 Kudan-Kita 4-chome
Chiyoda-ku
Tokyo 102 Japan
Tel (03) 3239-00821
Fax (03) 3239-0829
Mr. Shigeru Itoh
Deputy Director
Inspection and Measurement Division
Maritime Technology and Safety Bureau
Ministry of Transport
1-3 Kasumigaseki 2-chome
Chiyoda-ku
Tokyo 100, Japan
Tel (03) 3580-3111, ext 2442
Fax (03) 3503-3246
Trade Associations
Mr. Kenji Takagi
Manager
Japan Boating Industry Association
Asano Building
Ginza 2-5-1
Chuo-ku
Tokyo 104 Japan
Tel (03) 3567-6707
Fax (03) 3567-0635
Mr. Takashi Hasumi
Director of Planning
Japan Marina & Beach Association
Marine Building
1-23-17 Shinkawa
Chuo-ku
Tokyo Japan
Tel (03) 3553-8420
The Promotion Center for Yachting and
Boating of Japan
3-8, Meijiro 1-chome
Toshima-ku
Tokyo 171 Japan
Tel (03) 3590-9808
Fax (03) 3590-8325
Trade Publications
Mr. Yoshio Doi
President
Kazi Co., Ltd.
2-17 Hamamatsucho 1-chome
Minato-ku
Tokyo 105 Japan
Tel (03) 3434-5181
Fax (03) 3434-5184
Mr. Masaharu Ichiki
Managing Editor
Yachting Magazine
Force Seven Co., Ltd.
Makino Building 401
1-15-8 Shiba
Minato-ku
Tokyo 105 Japan
Tel (03) 3456-6611
Fax (03) 3456-1700
Mr. Seiichiro Ohno
Editor
Ocean Life Magazine
Nichiyama Building
1-9-12 Ginza
Chuo-ku
Tokyo 104 Japan
Tel (03) 3942-3881
Private Industry
Mr. Akiro Kanazashi
Marketing & Sales Department
Marine Division
Nissan Motor Co., Ltd.
17-1 Ginza 6-chome
Chuo-ku
Tokyo 104-23 Japan
Tel (03) 5565-2683
Fax (03) 5565-3419
Mr. Seigo Kato
General Manager
Yanase & Co., Ltd.
Marine Department
6-38 Shibaura 1-chome
Minato-ku
Tokyo 105 Japan
Tel (03) 3452-4311
Fax (03) 3243-8632
Mr. Yoshiharu Murakami
President
Global Marine, Inc.
Komatsu Building 602
2-14 Narihira
Ashiya City
Hyogo Prefecture 659 Japan
Tel (0797) 32-7348
Fax (0797) 34-3676
Mr. Satoshi Someya
Boat Coordinator Manager
Seibu Motor Sales Co., Ltd.
Marine Division
2-34-5 Minami Ikebukuro
Toshima-ku
Tokyo 171 Japan
Tel (03) 3981-1261
Fax (03) 3981-4441
Mr. Kohei Matsui
Chairman and Chief Executive Officer
Marina Ventures Japan, Inc.
Hakko Building
3-2-4 Higashi Nihonbashi
Chuo-ku
Tokyo 103 Japan
Tel (03) 3663-3020
Fax (03) 3663-3019
Mr. Kohtaro Horiuchi
Director
Yamaha Motor Co., Ltd.
2500 Shingai
Iwata-City
Shizuoka-ken 438
Japan
Tel (0538) 32-1184
Fax (0538) 37-4259
Mr. Ram Ikeuchi
President
Ram Associates, Inc.
4-10-7 Ohmachi
Kamakura-shi
Kanagawa-ken
Japan
Tel (0467) 22-5245
Fax (0467) 24-2012
Mr. Keiichi Ishizaka
President
Fusion Inc.
No. 901 Central 246
1-1-7 Shibuya
Shibuya-ku
Tokyo 105 Japan
Tel (03) 3486-2830
Fax (03) 3406-6061
Mr. Kenji Sugano
Managing Director
Marine Power Internatioal Japan Branch
No. 27-2 Muramatsu-Chisaki-Shinden
Shimizu-City
Shizuoka 424
Japan
Tel (0543) 34-2611
Fax (0543) 34-2022
TRADE PROMOTION OPPORTUNITIES
Since the Japanese pleasure boating industry is still in its infancy, there
are as yet few boat shows in Japan. The most important is the Tokyo
International Boat Show, held every year at the Tokyo International Trade
Center in Harumi in Feburary. This show has been held every year since 1962
and it attracts the main participants in the boating industry in Japan. In
1991 the show was lengthened to 6 days and paid attendance reached 155,000.
A week later a smaller version of the show is held in Osaka for four days.
Smaller boat shows are also held in Kita-Kyushu in late February, in Nagoya
in March, and in Hiroshima in April.
For information on these boat shows, contact the Japan Boating Industry
Association at the address shown in the industry contact section of this
report.
TABLE 1
U.S. PLEASURE BOAT EXPORTS TO JAPAN, 1987-90
(Thousands of Dollars)
Item and HS 1987 1988 1989 1990 90/89
Category
Inflatable boats 1,362 477 363 59 -84%
8903100000
Sailboats 2,380 6,119 6,920 16,148 +133%
89039100
Powerboats 12,352 24,537 61,757 116,754 +89%
89039200
Rowboats & canoes for 556 1,219 2,772 6,505 +135%
use w motors or sails
8903991000
Outboard motorboats 3,520 6,520 5,908 4,787 -19%
8903992000
All other pleasure 1,688 4,115 9,189 18,861 +105%
yachts and vessels
8903999000
TOTALS 21,860 42,518 86,828 163,115 +88%
Source: U.S. Department of Commerce
Notes:
1. Data for 1987 and 1988 are DOC estimates. In 1989, the U.S. adopted the
new harmonized system (HS) of product category classifications, which in
many cases were different from the categories used until 1988. The 1987 and
1988 figures are estimates of what the previous categories would be under
the new system.
2. Beginning with 1990 data, a few categories were changed in accordance
with an agreement between the U.S. and Canada to unify classification
categories. This resulted in minor changes in sailboat categories
8903910025 and 8903910035, and the creation of two new sailboat categories,
8903910065 and 8903910080.
TABLE 2
U.S. SAILBOAT EXPORTS TO JAPAN, 1987-1990
(Thousands of Dollars)
Item and HS 1987 1988 1989 1990 90/89
Category
Sailboats w motors 594 1,620 1,381 2,692 +95%
not exc. 9.2m
8903910015
Sailboats w motors 572 1.128 4,629 6,993 +51%
exc. 9.2m length
8903910025
Other Sailboats 46 558 45 112 +149%
8903910045
Other Sailboats w/o 584 1,163 571 3,628 +535%
motors
8903910045
Sailboats w/o motors 0 0 0 1,021 n.a.
6.5m to 9.2m
8903910065
Other sailboats w/o 0 0 0 1,702 n.a.
motors exc. 9,2m
8903910080
Other sailboats w/o 584 1,163 294 0 n.a.
motors
8903910090
TOTALS 2,380 6,119 6,920 16,148 +133%
Source: U.S. Department of Commerce
Notes:
1. Data for 1987 and 1988 are DOC estimates. In 1989, the U.S. adopted the
new harmonized system (HS) of product category classifications, which in
many cases were different from the categories used until 1988. The 1987 and
1988 figures are estimates of what the previous categories would be under
the new system.
2. Beginning with 1990 data, a few categories were changed in accordance
with an agreement between the U.S. and Canada to unify classification
categories. This resulted in minor changes in sailboat categories
8903910025 and 8903910035, and the creation of two new sailboat categories,
8903910065 and 8903910080.
TABLE 3
U.S. POWERBOAT EXPORTS TO JAPAN, 1987-1990
(Thousands of Dollars)
Item and HS 1987 1988 1989 1990 90/89
Category
Inboard powerboats 845 4,158 22,917 30,907 +35%
not exc. 8m
8903920020
Inboard powerboats 6,995 9,313 26,077 64,429 +147%
exc. 8m
8903920040
Powerboats with I/O 999 2,065 3,326 4,639 +39%
drives not exc. 6.5m
8903920060
Powerboats with I/O 3,513 9,011 9,437 16,779 +78%
drives exc. 6.5m
8903920080
TOTALS 12,352 24,537 61,757 116,754 +89%
Source: U.S. Department of Commerce
Notes:
1. Data for 1987 and 1988 are DOC estimates. In 1989, the U.S. adopted the
new harmonized system (HS) of product category classifications, which in
many cases were different from the categories used until 1988. The 1987 and
1988 figures are estimates of what the previous categories would be under
the new system.
2. Beginning with 1990 data, a few categories were changed in accordance
with an agreement between the U.S. and Canada to unify classification
categories. This resulted in minor changes in sailboat categories
8903910025 and 8903910035, and the creation of two new sailboat categories,
8903910065 and 8903910080.
TABLE 4
JAPANESE PLEASURE BOAT IMPORTS, 1986-1990
(Millions of Yen)
Category and 1986 1987 1988 1989 1990 90/89
HS code
Yachts/Other (3,630) (7,968) -- -- -- --
Pls. & Sports
89.01-221
Yachts over 0 (384) -- -- -- --
tons
89.01-222
Inflatables -- -- 897 447 571 +106%
890310000
Sailboats -- -- 2,063 5,206 6,758 +30%
890391000
Motorboats -- -- 10,281 17,697 36,414 +99%
890392000
Other Pleasure -- -- 1,847 4,452 8,877 +28%
Boats
890399000
TOTALS (3,630) (8,352) 15,088 27,802 52,620 +89%
SOURCE: Ministry of Finance exports and imports statistics. Due to
adoption of the HS codes beginning in 1988, figures on the same basis for
1987 and earlier are not available. The figures shown in parenthesis for
1986 and 1987 are under the old codes, of which there were only two for
pleasure boats. The totals for 1986 and 1987 should be comparable with
those for the following years.
TABLE 5
JAPANESE PLEASURE BOAT IMPORTS BY COUNTRY
1988-1990
(Millions of Yen, Share in Percent)
Country 1988 Share 1989 Share 1990 Share
Pct Pct Pct
Taiwan 2,337 15.5 2,968 10.7 5,118 9.7
United Kingdom 674 4.5 1,078 3.9 3,673 7.0
France 585 3.9 1,435 5.2 2,001 3.8
Netherlands 16 0.1 98 0.4 309 0.6
Fed. Republic 185 1.2 258 0.9 649 1.2
of Germany
Italy 1,037 6.9 2,215 8.0 5,971 11.3
Canada 286 1.9 453 1.6 1,051 2.0
U.S.A. 7,365 48.8 13,308 47.9 26,934 51.2
Australia 307 2.0 308 1.1 254 0.4
New Zealand 138 0.9 392 1.4 587 1.1
Others 2,158 14.3 5,289 19.0 6,073 11.5
TOTALS 15,088 100.0 27,802 100.0 52,620 100.0
Source: Ministry of Finance exports and imports. Percentage totals do not
equal 100 due to rounding.
TABLE 6
JAPANESE SAILBOAT IMPORTS BY COUNTRY, 1988-1990
(HS 890391000)
(Upper Line: Millions of Yen;
Lower Line: Units)
Country 1988 1989 1990 90/89
Taiwan 258 375 378 +1%
18 23 22
Denmark 111 247 274 +11%
157 215 28
United Kingdom 132 350 736 +110%
59 75 153
Netherlands 16 98 309 +215%
9 10 22
France 549 1,423 1,914 +35%
63 133 136
Fed Rep of Germany 142 215 536 +149%
37 45 53
Finland 85 373 481 +29%
6 14 13
U.S.A. 330 793 975 +23%
172 126 135
Australia 226 202 202 +0%
51 86 44
New Zealand 138 392 585 +49%
16 37 32
Others 76 738 368 -50%
13 120 70
TOTALS 2,063 5,206 6,758 +30%
601 884 708
Source: Ministry of Finance Exports and Imports
TABLE 7
JAPANESE POWERBOAT IMPORTS BY COUNTRY, 1988-1990
(HS 890392000)
(Upper Line: Millions of Yen;
Lower Line: Units)
Country 1988 1989 1990 90/89
Taiwan 1,181 2,170 3,959 +82%
66 130 179
Hong Kong 7 362 273 -25%
1 4 6
Singapore 105 228 440 +93%
5 9 13
Norway 62 124 196 +58%
10 15 18
Sweden 731 1,725 2,091 +21%
28 38 44
United Kingdom 410 670 2,773 +313%
17 26 95
Italy 811 2,069 5,836 +182%
14 18 61
Canada 230 260 790 +203%
48 27 31
U.S.A. 5,954 9,059 18,450 +104%
5,343 1,477 1718
Others 790 1,030 1,606 +56%
137 65 73
TOTALS 10,281 17,697 36,414 +106%
5,669 1,809 2,238
Source: Ministry of Finance Exports and Imports.
TABLE 8
JAPANESE IMPORTS OF OTHER BOATS FOR PLEASURE
AND SPORTS USE (ROWBOATS, CANOES, OUTBOARD MOTORBOATS, AND
OTHERS, NON-INFLATABLE)
BY COUNTRY, 1988-1990
(HS 890399000)
(Upper Line: Millions of Yen;
Lower Line: Units)
Country 1988 1989 1990 90/89
Korea 13 12 6 -50%
326 257 67
Taiwan 59 30 350 +1067%
1,486 261 4,223
Norway 6 21 46 +119%
83 285 537
United Kingdom 128 55 126 +129%
262 1,167 1,079
France 32 9 47 +422%
7 234 467
Fed Rep of Germany 37 40 112 +180%
233 521 1,064
Italy 224 137 135 -1%
8 14 358
Canada 56 189 261 +38%
584 434 946
U.S.A. 1,072 3,437 7,494 +118%
5,339 12,363 21,634
Australia 68 106 52 -51%
597 551 156
Others 152 416 247 -41%
291 764 809
TOTALS 1,847 4,452 8,877 +99%
9,216 16,851 31,340
Source: Ministry of Finance Exports and Imports
TABLE 9
JAPANESE PLEASURE BOAT SHIPMENTS,
1986-1991
(Millions of Yen)
Category 1987 1988 1989 1990 1991
Est Est
Motorboats* 9,976 14,947 21,122 25,346 25,346
Sailboats 2,471 3,011 2,863 2,900 2,900
Rowboats 1,862 1,610 1,875 2,000 2,000
Personal 6,500 13,797 16,341 15,000 12,000
Watercraft
TOTALS 20,809 33,365 42,201 45,246 42,246
* Includes inflatables.
SOURCE: Japan Boating Industry Association annual survey of Japanese boat
manufacturers. Surveyed companies include JBIA members, Tokyo Boat Show
exhibitors, companies which advertise in the boating press, and other
companies which have responded to the survey in the past. 36 companies'
responses are included in the 1989 figures.
Estimates for 1990 and 1991 are by Wallace Offutt Consulting.
TABLE 10
JAPANESE PLEASURE BOAT EXPORTS, 1986-1990
(Upper Line: Millions of Yen;
Lower Line: Units)
Category and 1986 1987 1988 1989 1990 90/89
HS code
Inflatables (1,418 (1,228) -- -- -- --
89.01-220 (17,304) (14,483)
Other Boats (4,166) (7,455) -- -- -- --
Sports/Pleas. (3,428) (17,932)
89.01-290
Inflatables -- -- 1,120 985 948 -3.8%
890310000 13,305 10,317 9,298
Sailboats -- -- 628 106 104 -1.9%
890391000 31 39 20
Motorboats -- -- 1,105 66 39 -40.9%
890392000 77 44 19
Other Pleasure -- -- 11,227 10,352 8,742 -15.6%
Boats 37,519 35,903 30,774
890399000
TOTALS (5,584) (8,683) 14,080 11,509 9,833 -14.6%
SOURCE: Ministry of Finance exports and imports statistics. Due to
revisions in the HS codes beginning in 1988, figures on the same basis for
1987 and earlier are not available. The figures shown in parenthesis for
1986 and 1987 are under the old codes, of which there were only two for
pleasure boats. It is thought that the totals for 1986 and 1987 are
comparable with those for the following years.
TABLE 11
JAPANESE PLEASURE BOAT EXPORTS TO
THE U.S., 1986-1990
(Upper Line: Millions of Yen;
Lower Line: Units)
Category and 1986 1987 1988 1989 1990 90/89
HS code
Inflatables (1,129) (960) -- -- -- --
89.01-220 (13,528) (10,987)
Other Boats (923) (3,589) -- -- -- --
Sports/Pleas. (457) (11,565)
89.01-290
Inflatables -- -- 856 627 640 +2.1%
890310000 10,097 6,647 6,084
Sailboats -- -- 470 27 10 -63.0%
890391000 12 7 2
Motorboats -- -- 1,105 0 0 --
890392000 1
Other Pleasure -- -- 8,963 8,488 7,049 -17.0%
Boats 30,547 30,864 27,078
890399000
TOTALS (2,052) (4,549) 11,294 9,119 7,689 -15.7%
SOURCE: Ministry of Finance exports and imports statistics. Due to
revisions in the HS codes beginning in 1988, figures on the same basis for
1987 and earlier are not available. The figures shown in parenthesis for
1986 and 1987 are under the old codes, of which there were only two for
pleasure boats. It is thought that the totals for 1986 and 1987 are
comparable with those for the following years.
TABLE 12
U.S. PLEASURE BOAT IMPORTS FROM JAPAN, 1987-90
(Thousands of Dollars)
1987 1988 1989 1990 90/89
TOTALS 61,358 125,001 70,164 39,983 -40.0%
Source: U.S. Department of Commerce
Note: Data for 1987 and 1988 are DOC estimates. In 1989, the U.S. adopted
the new harmonized system (HS) of product category classifications, which in
many cases were different from the categories used until 1988. The 1987 and
1988 figures are estimates of what the previous categories would be under
the new system.
TABLE 13
1990 U.S. PLEASURE BOAT EXPORTS TO JAPAN
Item and HS U.S. Dollars Units Weight
Category
Inflatable boats 58,590 2 2,953
8903100000
Sailboats 16,148,448 260 867,184
89039100
Powerboats 116,754,649 10,439 6,894,634
89039200
Rowboats & canoes for 6,505,426 853 496,798
use w motors or sails
8903991000
Outboard motorboats 4,786,998 785 481,322
8903992000
All other pleasure 18,861,207 4,139 1,168,226
yachts and vessels
8903999000
TABLE 14
1990 U.S. SAILBOAT EXPORTS TO JAPAN
Item and HS U.S. Dollars Units Weight
Category
Sailboats w motors 2,692,276 39 166,505 not
exc. 9.2m
8903910015
Sailboats w motors 6,992,823 51 314,904
exc. 9.2m length
8903910025
Other Sailboats 112,325 10 5,870
8903910045
Other Sailboats w/o 3,628,460 125 257,602
motors
8903910045
Sailboats w/o motors 1,020,636 25 59,449
6.5m to 9.2m
8903910065
Other sailboats w/o 1,701,926 10 62,854
motors exc. 9,2m
8903910080
TOTALS 16,148,448 260 867,184
TABLE 15
1990 U.S. POWERBOAT EXPORTS TO JAPAN
Item and HS U.S. Dollars Units Weight
Category
Inboard powerboats 30,907,370 9,205 2,089,572
not exc. 8m
8903920020
Inboard powerboats 64,428,527 584 3,308,819
exc. 8m
8903920040
Powerboats with I/O 4,639,293 201 336,443
drives not exc. 6.5m
8903920060
Powerboats with I/O 16,779,459 445 1,159,800
drives exc. 6.5m
8903920080
TOTALS 116,754,649 10,439 6,894,634
Source: U.S. Department of Commerce
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